Tuesday, March 27, 2012

The Party is Over – Investors Need Help

by Roger McManus

The days of dropping into Las Vegas and picking up homes from unfortunate, underwater home owners are over. It was a bonanza for a while; now it is slim pickin’s. You need a guide. It is nearly impossible to buy a lower-priced home without help from someone who is actively acting as your ally.
The sad truth is that there are thousands of real estate agents that will submit an offer for you on any of the thousands of homes available for sale. But, in the huge majority of cases, such an exchange is a waste of everybody’s time. The buyers with skilled and aware agents working on their behalf will coach their clients into a position to buy the house every time.

You do not need a Nevada real estate salesperson. You need a “buying coach”.
And, astute investors already know they are getting a bargain in Las Vegas. And, the smartest ones know they will pay a little above the “bottom” price just to have a shot at beating out all the others wanting that same property.

For example, back when even small homes sold for hundreds of thousands of dollars, real estate agents made significant sums of money for their efforts. Now, when many investment-grade homes sell for under $100,000, those same agents have to work just as hard for a fraction of the previous money. Their incentive for working hard to get the best bargains for their clients may not be as great as before.

So, how does an investor find a “buying coach” that will work for you just as hard as they did when the market was more robust pricewise? The best buyer agents will ask you for a commitment. They will ask that you agree to consistently work with them and not bounce around from agent to agent. After all, every Realtor® in Las Vegas has access to every listed house anyway, so not having to review your needs to several different agents actually saves you effort, too.

A good “buying coach” will also ask you to pay a minimum commission. You should not only welcome this, but seek an agent who requires it. That way your partnership with the agent is on solid footing. Then, if you want to “bottom feed” on very low priced properties, you know that the agent has every incentive to work just as hard to make you successful. Everybody is on the same page.

Most of the commission is still usually paid by the seller. All a professional agent will ask is the difference between what the seller pays and some amount you agree upon, generally the commission on a $100,000 sale. So, if you pay $70,000 for a home, the seller will pay commission on that amount and you will add the commission on $30,000 to your closing costs.

Investors, get your best shot at the houses you want. Partner with a “buying coach” to help you.